LEZ GO AF ISH FREAKY FRIDAY! http://usa.v1.abalancingact.com/
post your opinion!
also i believe we need to start taxing unrealized gain. tax foreigners as well! and treat investment gains as ordinary income.
us stock market is worth 30 trillion! lets assume a 10% total return!. thats 3 trillion in gains!
mostly rich people own it, so lets assume a max 37% tax rate, 1.11 trillion generated per year! tax deficit fixed 
If you tax unrealized gains, people will end up paying taxes for no reason when the market oscillates. Furthermore, increasing investment taxes to he rate of ordinary income would cause the stock market to fall 30% or more, wiping out many of the potential tax gains.
its done yearly, your basis steps up! cuts both way. capital losses offset ordinary income. or whatever.
a fall of 30% at current valuations wouldnt be so bad. so if thats the trigger so be it. short term pain for long term fairness.
why on earth would capitalized gains not be taxed at same rate as ordinary income. thats obvious bs. in addition why would unrealized gains be sheltered, its money hitting your account that you can sell.
honestly i feel that this type of tax would also incentivize people to stop tax considerations for investing. investing should be plain, buy the strong, kill the weak. not keep the weak so you dont realize a gain.
on a side note, if we actually did this shit. there would be no need for corporate tax! cuz honestly that shit is double taxation anywho!
Ah, but they go hand in hand.
Uh because it’s UNREALIZED. You do know that you can’t just sell all things at mark. A lot of investments are very illiquid and would realize a loss if forced to be sold early. Income is taxed because it is liquid… What you’re suggesting would turn the investment world on it’s head and almost certainly bring the US into a major recession / depression. Thus, solving nothing.
Accurate depiction of Nerdy…
Also, SLT; that’s a dank simulator. Tsar Bomba 100Mt FTW.
Goodnight my sweet sweet Brits - and by sweet, I mean not sweet.
Nery you fool. Clearly hacksaw way of thinking. What would happen if you bought some volatile asset like Dogevoin or maybe call options and the price spiked on December 31st, then came back down? Let’s say the price goes from $10 to $100, then $30 on January 1st. You have an asset worth $30 now and owe $40 on taxes.
Also, you know that companies already pay taxes on earnings, right? You already get taxed twice if you own stock.
In such a world, I would surely start a Ponzi scheme.
ok relax all. hear me out!
in regards to liqudiity, the stock market is plenty liquid which is why these should be mark to market. literally about 1% of market cap is bought and sold per day. assuming an average of 10% percent gain, typically you will be taxed 3% of total investment per year. volatile companies will get taxed more, so yea great point ohai. but who gives a shit about speculators. seems like its a tax planning issue. that person should have sold as it appreciated knowing full well that he’ll be taxed on it.
in terms of a huge downturn, trust me even if we dont increase taxes, downturn will always happen. taxation is not what causes it but natural human psyche. multiples will fall since we are taking out a huge advantage of capital v labor, but market multiples in general even when shit crashes is a significant premium from private businesses. so thats a non issue.
the biggest issue is the immediate step up of legacy businesses. basically old ppl who own the stocks for a really long time that has appreciated a lot. for example they invest 10m 30 yrs ago that is now 100m. the 90m gain, will casue 30m tax, so he’d have to sell 30% of holdings which is a major issue. perhaps grandfathering previosu cost basis to be realize at sale, and moving everything else to mark to market will soften the blow. but moving forward this will make markets mroe efficient.
lastly, because markets are currently expensive, this is the perfect time to inititate ridiculous taxes to incite a small recession. the idea here is that the market is hot and taxes will cool it the fuck down and allow governments tobalance the budget.
so is unrealized gain still a problem? if so, how about making long term capital gain equivalent to ordinary income tax rates! and killing the step up basis bullshit! ALLRIGHTY! lets discuss!